A Basic Introduction to Co-operatives

A co-operative is any organisation that

is run by its members for its members, essentially instead of shareholders, you have stakeholders. For example, a housing co-op is run and owned by its tenants, a workers co-op is owned and run by its workers, an artists co-op is run by and for artists, and a food co-op is run and owned by the people who buy food from it. This means that the main people who benet from running the organization are the people using it, rather than a second category of people who make money simply from ownership.

Why Co-ops rock

Co-ops are also anti-hierarchical. This means every stakeholder has an equal share in the organisation, so no one has more of a say over how things are run than anyone else. Most co-ops use consensus, or if theyre too big, they sometimes democratically elect a board to run the organisation. Smaller is better though, since it means more direct involvement for the members.

Co-ops:
Co-operative Values & Principles Co-operatives are unique businesses that are based on explicit values and principles articulated in the International Co-operative Alliances Statement on the Co-operative Identity, adopted in 1995 Denition A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social & cultural needs & aspirations through a jointly-owned & democratically controlled enterprise. (International Co-operative Alliances Statement on the Co-operative Identity (ICASCI), 1995) Values Co-operatives are based on the values of self-help, selfresponsibility, democracy, equality, equity and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others. (ICASCI, 1995) Principles The cooperative principles are guidelines by which co-operatives put their values into practice. Seven principles are dened in the International Co-operative Alliances Statement on the Co-operative Identity. (overleaf...) Stakeholder Ownership Stakeholder ownership promotes local control, empowerment and direct democracy, as opposed to shareholder ownership in which the interests of stakeholders are neglected and the prot motive prevails. An essential principle of co-operative organising is that the organisation is owned and run by its stakeholders.

Co-operatives as a means of organising Co-operatives are also a means of organising they are a process not just an outcome. Co-operation provides strength by bringing people with mutual aims & interests together through the pooling of energy, time & resources to effect change for a common benet. Non-hierarchical Non-hierarchical decision-making allows each person involved in the project to have an equal say in the running of the organisation. This may be enacted through consensus decision making in which all members must agree to decisions. While non-hierarchical decision-making can take longer than a hierarchical management system, it makes for more well-rounded decisions which better reect the interests of members while empowering individuals at the same time. Another form of organisation that is less hierarchical is democratic election of co-ordinators or delegates who are subject to recall.

Consensus decision making Consensus Decision Making is a system of reaching decisions that is widely regarded as one of the most participative and empowering decision making process. It is a process that can result in surprising and creative solutions. -When used properly, Consensus is participative and democratic. It not only encourages, but actually requires everyone to take an active part in the decision making process - unlike conventional democratic systems in which we give our power to others to wield on our behalf. -Consensus actively discourages domination on account of gender, race, sexuality or any of the other usual isms. -The quality of a consensus decision should be better. Groups using consensus are attempting to nd win-win solutions to their problems. They try to synthesise the best of all the groups proposals into a decision that everyone is happy to implement, thus avoiding isolating and alienating minorities. -Consensus is also task orientated - its a decision making process, and therefore by denition about making effective decisions

Ways of organising

Basic Intro-

The information in this pamphlet >>ver. 1.2<< was adapted from: the Oroberous Artists Co-op zine 2007; Shifting Spaces website [www.shiftingspace.coop]; Seeds for Change Network [www.seedsforchange.org.uk]; The Co-operative Federation of Victorias What is a co-operative? Brochure; and The International Co-operative Alliances Statement on the Co-operative Identity 1995.

Co-operative Principles
(Source: International Co-operative Alliances Statement on the Co-operative Identity, 1995

ip y and Open Membersh ons able to use their 1st Principle: Voluntar tions, open to all pers er, ntary organiza mbership, without gend Co-operatives are volu responsibilities of me accept the services and willing to ligious discrimination. racial, political or re social, 2nd Principle: Democr atic Member Control Co-operatives are demo cratic organizations co ntrolled by their memb tively participate in ers, who acsetting their policies and making decisions. serving as elected re Men and women presentatives are acco untable to the memb co-operatives member ership. In primary s have equal voting rights (one member, operatives at other le one vote) and covels are also organise d in a democratic ma nner. their Economic Participation control the capital of 3rd Principle: Member , and democratically of uitably to the common property Members contribute eq that capital is usually part of if any, on capital co-operative. At least limited compensation, any or ers usually receive allocate surpluses for the co-operative. Memb membership. Members ition of ssibly by setting up subscribed as a cond their co-operative, po purposes: developing ing members in proall of the following be indivisible; benet es h at least would pporting other activiti reserves, part of whic e co-operative; and su ctions with th portion to their transa ership. approved by the memb 4th Principle: Autonomy and Independence Co-operatives are auto nomous, self-help orga nizations controlled by If they enter into ag their members. reements with other organizations, includin raise capital from ex g governments, or ternal sources, they do so on terms that control by their memb ensure democratic ers and maintain thei r co-operative autono my. ion Training and Informat s, elected represenPrinciple: Education, 5th ning for their member education and trai ctively to the develCo-operatives provide ey can contribute effe g employees so th ic - particularly youn tatives, managers and form the general publ eratives. They in s of co-operation. opment of their coop the nature and benet aders - about people and opinion le 6th Principle: Co-opera tion among Co-operativ es Co-operatives serve th eir members most effe ctively and strengthen movement by working the cooperative together through loca l, national, regional an structures. d international for Community communities through 7th Principle: Concern development of their r the sustainable Co-operatives work fo their members. policies approved by
RMIT Food Co-op